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ICICI Securities has buy call on with a target price of Rs 1804. The current market price of PVR Ltd. is Rs 1498.6.
Time period given by analyst is one year when PVR Ltd. price can reach defined target.
PVR Ltd., incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 9131.30 Crore) operating in Media & Entertainment sector.
PVR Ltd. key Products/Revenue Segments include Income From Films, Beverages & Food, Fees & Other Charges, Income From Advertisement, Other Operating Revenue and Income from Films Production & Distribution for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 709.71 Crore, up 157.88 % from last quarter Total Income of Rs 275.21 Crore and up 121.69 % from last year same quarter Total Income of Rs 320.13 Crore. Company reported net profit after tax of Rs -10.20 Crore in latest quarter.
Investment Rationale
PVR’s Q3FY22 cash EBITDA was Rs380mn, but the quarter highlighted potential opportunities from higher ATP and SPH, which grew by 14% and 29% vs Q3FY20. Company sounded optimistic and anticipates further growth. The brokerage believes maximising revenue per screen is the ultimate goal and, if it is able to protect occupancy on higher realisation, we would likely see much higher EBITDA. This will be further boosted by lower cost structure. It would wait to see durable ATP and SPH on complete normalisation. Content pipeline remains good and occupancies should increase when normal operations for cinemas are allowed. The brokerage is now penning gradual recovery and, accordingly, have cut EBITDA by 26% and 12% respectively for FY23E and FY24E. It has also cut the target price to Rs1,804 (from Rs1,874), but increased EBITDA multiple to 16x (from 14x) on the back of increased faith in the business model and optionality for higher ATP / SPH.
Promoter/FII Holdings
Promoters held 17.02 per cent stake in the company as of 31-Dec-2021, while FIIs owned 40.08 per cent, DIIs 20.11 per cent.
Time period given by analyst is one year when PVR Ltd. price can reach defined target.
PVR Ltd., incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 9131.30 Crore) operating in Media & Entertainment sector.
PVR Ltd. key Products/Revenue Segments include Income From Films, Beverages & Food, Fees & Other Charges, Income From Advertisement, Other Operating Revenue and Income from Films Production & Distribution for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 709.71 Crore, up 157.88 % from last quarter Total Income of Rs 275.21 Crore and up 121.69 % from last year same quarter Total Income of Rs 320.13 Crore. Company reported net profit after tax of Rs -10.20 Crore in latest quarter.
Investment Rationale
PVR’s Q3FY22 cash EBITDA was Rs380mn, but the quarter highlighted potential opportunities from higher ATP and SPH, which grew by 14% and 29% vs Q3FY20. Company sounded optimistic and anticipates further growth. The brokerage believes maximising revenue per screen is the ultimate goal and, if it is able to protect occupancy on higher realisation, we would likely see much higher EBITDA. This will be further boosted by lower cost structure. It would wait to see durable ATP and SPH on complete normalisation. Content pipeline remains good and occupancies should increase when normal operations for cinemas are allowed. The brokerage is now penning gradual recovery and, accordingly, have cut EBITDA by 26% and 12% respectively for FY23E and FY24E. It has also cut the target price to Rs1,804 (from Rs1,874), but increased EBITDA multiple to 16x (from 14x) on the back of increased faith in the business model and optionality for higher ATP / SPH.
Promoter/FII Holdings
Promoters held 17.02 per cent stake in the company as of 31-Dec-2021, while FIIs owned 40.08 per cent, DIIs 20.11 per cent.
(Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
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